The all-powerful GST Council headed by the Hon’ble Finance Minister, Mr. Arun Jaitley met for the fifteenth time with an agenda to fix the rates for almost all the remaining items, such as precious metals (gold and silver), diamonds, biscuits, textiles, and footwear. Ahead of this meeting, sprint begins for GST rollout from July 1, 2017 as envisaged.

With the conclusion of the 15th GST Council meet on June3, 2017, the gist of the key takeaways from the meeting of the GST Council are as under:

All other States have agreed to the July 1 timeline, despite reservations voiced by West Bengal:

In this regard, the Hon’ble Finance Minister, Mr. Arun Jaitley has said that “he was hopeful about the July 1 roll-out. He said the GST Network (GSTN), the information technology backbone of the new tax regime, had responded satisfactorily to various questions from state finance ministers.”

Finalized tax rates for most of remaining categories of goods:

The GST Council has broadly approved the GST rates for most of remaining categories of goods.

Gist of the key changes made in the Final Transitional Rules (yet to be made available on public domain):

Where the tax rate exceeds 18%, traders and retailers can make claim of 60% against the CGST or SGST payable. For tax rate below 18%, it will be retained at 40%.

Revenue Secretary, Dr. Hasmukh Adhia said, for transition stock, the Government will refund 100% Excise duty for goods costing above Rs. 25,000, which bears a brand name of the manufacturer and are serially numbered like TV, fridge or car chasis. It is being further stated that on all those items, even if it is coming through the dealer, the manufacturer will give the credit transfer document to the distributor and the distributor will be able to take 100% credit for the big ticket items.

Submission of Draft Rules for anti-profiteering for consideration:

The Centre has submitted Draft Rules for anti-profiteering for consideration of the GST Council members in the 15th meeting.

Mr. Jaitley said that “the Council has agreed to set up a Committee comprising officials from Centre and states to look into the complaints with regard to the anti-profiteering provision in CGST Act. The setting up of the Committee is part of the draft anti-profiteering rules that have been submitted to the Council for its approval. Following the approval of the rules by the Council, the draft rules shall be put in public domain and after the feedback, shall be again brought back to the Council for the final approval.”

IGST Exemptions/Concessions under GST:

The list of IGST Exemptions/Concessions under GST has been uploaded after the 15th GST Council meet, which are as under:

The GST Council has made amendments/additions in the GST Rate Schedule for certain Goods for providing more clarification. For e.g. as per the earlier GST Rate Schedule for Goods, Solar Panel was falling under the tax slab of 18% as well as 5%, now it has been clarified vide amendment that Solar Panel will be taxable at 5%.

Addendum to the GST Rate Schedule for Goods can be access at below link:

GST Council has made all decent efforts to ensure proper fitments of remaining categories of goods. New slab rate of 3% introduced for gold, silver and diamonds, marks an evidence that Government is keenly looking towards various concerns of the Industry. Similarly, concerns of textile industry have also been taken care of as most of the textile and yarn is taxable at 5%, except ready-made garments which will be taxed at 12%.

A Big sign of relief is granted in the form of increase in proportion of deemed transitional credits where duty paying documents are missing. Complete Industry Inc was pushing hard for increase in quantum of transitional credit, though increase in proportion is limited only to specified rate products.

In the next meeting of the GST Council, which is scheduled to be held on June 11, 2017, the GST Council will review the rates on the basis of feedback to be received from Industry and also review the preparedness before the July 1 rollout. Pending Draft Rules like Accounts and Records, E-way Bill etc., may also be taken up in the next meeting.

All these series of events and upcoming events are going to end the marathon and enlighten the pave for rolling out of the biggest indirect tax reform from July 1, 2017. Nonetheless, it is time now for the Industry to gear up and join the marathon to ensure their hassle-free transition to GST.

Source: Business Standard, Indian Express etc., and video capturing the press conference of Mr. Arun Jaitley after 15th GST Council Meet ends

It would be ideal if the GSTN is put on trial for invoice uploadi ng , credit verification etc. on selected assessees .
The technical issues can get sorted out before actval roll out of GST..
What will be the future of LTUs in GST regime.?